Why AQMD Spray Booth Approvals Are Getting Harder — And Why Body Shops With Permitted Booths Are Selling for a Premium

In Los Angeles and across Southern California, auto body shops with fully permitted AQMD spray booths are becoming significantly more valuable. While it has always been challenging to install new booths, many shop owners, installers, and brokers have observed that permitting has become dramatically more difficult in recent years — especially in older industrial buildings.

As a result, shops with existing, compliant, grandfathered spray booths are now selling at a premium.

This article breaks down the trend, why it’s happening, and what it means for your shop’s value.

1. Why New AQMD Spray Booth Approvals Are So Difficult Today

AQMD (South Coast Air Quality Management District) regulates anything involving coatings, painting, and volatile organic compounds (VOCs). Spray booths fall under some of AQMD’s strictest requirements.

Industry experts consistently report challenges in three areas:

1️⃣ Buildings built before modern ventilation codes

Most LA industrial buildings were not originally engineered for:

• high-volume exhaust requirements

• compliant duct placements

• modern filtration systems

• fire-code alignment

Retrofitting them is often impossible or cost-prohibitive.

2️⃣ Landlords increasingly refuse booth installations

Many landlords simply don’t want:

• roof penetrations

• fire risks

• stricter inspections

• hazardous waste oversight

• higher insurance requirements

If the landlord refuses, the permit can’t proceed — regardless of AQMD.

3️⃣ Stricter environmental rules

In recent years, AQMD has tightened VOC and particulate-control standards across multiple rules (including Rule 1151 – automotive coatings).

Installers often report:

“New booth approvals are way harder now than they were ten years ago.”

Whether it’s stricter enforcement, aging buildings, or fire-department overlap — the outcome is the same: far fewer new booths are being approved compared to past decades.

2. Market Reality: Existing Permitted Spray Booths Are Now Scarce

Because it’s so difficult to get a booth approved today, buyers aggressively pursue shops that already have one — especially fully permitted, grandfathered, properly ducted units.

3. How Spray Booth Scarcity Translates to Higher Sale Prices

This isn’t just buyer preference — it affects valuation.

Across recent deals and buyer surveys, shops with properly permitted spray booths typically achieve:

• More inquiries

• More qualified buyers

• Shorter time on market

• Stronger offers

• Higher SDE multiples

4. The Holy Grail: DRP + Fully Permitted Spray Booth

Ask any collision-industry buyer:

A shop with:

✔ DRP relationships

✔ Fully permitted spray booth

✔ Solid lease

…is gold.

See my listings page to see the body shop I currently have listed

These shops consistently attract the largest buyer pools, including:

• DRP networks expanding territories

• Individual owner-operators

• Local consolidators

• Experienced technicians buying their first shop

  
  

5. What This Means for Shop Owners

If you currently own a shop with a legal, fully permitted AQMD spray booth, you have a valuable asset — one that’s becoming harder to replicate every year.

Action steps for owners:

1. Gather your AQMD documentation

Buyers love:

• permits

• inspection logs

• waste-hauling contracts

• maintenance records

2. Make sure your booth is in compliance

A functioning, compliant booth = stronger buyer pool.

3. If thinking about selling in the next 12–24 months

Start preparing now — permit scarcity is driving some of the highest valuations the collision industry has seen for small/midsize shops.

Written by Aaron Levitan

 California Auto Repair Business Broker

DRE License# 02221550

Aaron Levitan is a California-licensed business broker specializing exclusively in auto repair and automotive service businesses. He guides shop owners through confidential, high-value sales with proven industry insight and a deep network of qualified buyers.

Thinking about selling your auto repair shop? Buyer demand in Southern California is stronger than ever. Reach out for a confidential valuation and get a clear picture of what your shop is truly worth in today’s market.

Book a Free Consultation